Buying a multifamily home of two or more units is different than buying a single-family home because it’s an investment and you need a loan specifically designed for a multifamily property. Buying a multifamily home takes six steps, such as researching the neighborhood and choosing your lender, and the entire process can be completed in…
Real Estate Investing
Rental Market Analysis: What It Is & How to Complete One
A rental market analysis (RMA) helps investors assess the rental potential of a specific area. Typically, you figure out the adjusted price per square foot of comps and then multiply by the square feet of properties for sale. If the average rent is higher than the average price of available properties, the rental market is…
Section 1031 Exchange: The Ultimate Guide to Like-Kind Exchange
Section 1031 refers to an IRS tax code that allows investors and businesses to reduce their tax liabilities when selling certain property. A 1031 exchange helps defer capital gains taxes by selling your investment property and rolling your capital gains over to purchase a like-kind property. Usually, you have 180 days to purchase the new…
How to Buy a House at a Real Estate Auction in 6 Steps
Buying houses at auction is a fast process where undervalued properties are sold to the public through competitive bidding. Auctions are either in person or online and can be advantageous for a fix and flipper and a long-term investor. Most auctions require a 5% to 10% deposit the remainder within 30 to 45 days (if…
FHA Multifamily Loan: Costs, Terms & Where to Find
An FHA multifamily loan is a multifamily mortgage issued by a qualified lender and insured by the Federal Housing Administration (FHA). FHA multifamily loans are used to purchase properties with 5+ units and are subject to FHA loan limits and qualifications. These are different than normal FHA loans and have rates between 3.2 – 4.9%….
How to Create a House Flipping Business Plan with Free Template
A house flipping business plan explains your fix and flip business’ goals and what steps you need to take to make profits. It’s also used by lenders and investors when deciding if they want to finance your fix and flip business. Typical things included in a business plan are your target price range, timeline, repair…
Normal Wear and Tear for Rental Properties: A Landlord’s Guide
Normal wear and tear is damage that naturally occurs in an investment property due to aging. It typically results from a tenant living in the property and is considered normal depreciation. It’s not caused by neglect or abuse of the property. Landlords need to fix normal wear and tear but aren’t required to fix tenant…
Everything You Need to Know About Tax Lien and Tax Deed Investing
Tax lien investing and tax deed investing involves buying property on which owners have become delinquent paying their property taxes. Investors profit from tax liens by earning interest and sometimes penalties. Investors can also potentially acquire below-market property both with tax liens and tax deeds if the property owner ultimately fails to repay their debt….
Blanket Mortgage Fundamentals: Rates, Terms, Qualifications and More
A blanket mortgage enables real estate investors to buy, hold, and sell multiple properties under a single financing arrangement, which is more efficient than having multiple individual mortgages. With a blanket loan, properties can be sold without triggering the “due on sale,” which allows proceeds from the sale to be used to purchase more property….
How to Wholesale Real Estate the Right Way
Wholesaling real estate is when a real estate wholesaler puts a distressed home under contract with the intent to assign that contract to another buyer. The wholesaler doesn’t plan on fixing up or selling the property. Instead, they market the home to potential buyers for a higher price than they have the property under contract…
How to Buy Land – The Ultimate Guide
Buying land is an often overlooked form of real estate investment that can produce good returns. Land is a fairly hands-off investment, but generating returns is more involved than with rental property. This is because to buy land, there’s more research, evaluation, and firm profit strategy needed. Here are four stages to buying land and…
How to Find REO Properties for Sale
Real Estate Owned (REO) properties have been foreclosed on and are now in the possession of a lender. The lender offers the properties at a discount to recoup as much money as they can. Investors can find REO properties through websites and auctions, REO banks, and real estate brokerages. Where to Find REO Properties For…